Inditex has been effective with its retail machine. Zara has been contributing 65% to Inditex sales. Its rapid expansion was extraordinary. In 2011 alone, Zara has opened 179 stores in Asia, 156 of which were in China. Since its IPO more than 10 years ago, Inditex revenues have reached €13.8 billion.
Inditex CEO Pablo Isla has fashioned the company into a major industry playing. He has the wisdom to play on customer portfolio in such a way that they would keep on coming back. Under Isla’s leadership, Inditex has taken advantage of high inventory turnover, a higher sales-floor-to-store-size ratio.
Its competitors, which include H&M, Benetton, Gap and Uniqlo, could not catch up with the way Inditex has expanded in the market. And there is no indication that in the future, Inditex would give up its lead in innovation and growth.